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Happy pre-Friday ☀️
More exciting news about TC Daily: We’re having a special edition written by an ecosystem stakeholder.
We won’t reveal who it is just yet, but this skweird founder is dedicating a couple hundred words, on August 29, to a pretty exciting concept. Don’t miss out on TC Daily till then.
Telcos
Telcos say the cost of doing business in Nigeria is high
Doing business in Nigeria is becoming more difficult; even the big guys are complaining. During a panel discussion at the Telecom Townhall Forum hosted by Financial Derivatives Company (FDC) on Tuesday, CEOs of MTN Nigeria, Airtel Nigeria and IHS Towers complained that the cost of offering telecom services in Nigeria is becoming too expensive to handle.
Multiple taxations, worsening power supply, and currency volatility are eroding business margins and skyrocketing the cost of providing services. Providing telecom services costs a lot of money: the fibre cables that run throughout the roads and cities in Nigeria, the network towers you see in your neighbourhood, and the cost of maintaining these infrastructures are sky-high.
Telcos have spent at least $3 billion dollars in yearly investment since 2001, and more than $4 billion to keep Nigerians connected to the internet, according to Bolaji Balogun, Chapel Hill Denham CEO.
The CEOs are now pushing for tariff increases on data and voice subscriptions. All this coming at a time when Nigerians are facing high inflation. A potential tariff hike will be a difficult pill for Nigerians to swallow. However, there’s a clear indication of the challenging business environment in Nigeria, where even industry giants are struggling to stay afloat.
Read Moniepoint’s 2024 Informal Economy Report
Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy.
Economy
Ghana records reduced inflation 5 months in a row
When inflation is on the rise, central banks typically increase interest rates to make borrowing more expensive, which reduces spending and ultimately slows down price increases. In July 2023, the Bank of Ghana (BoG) Monetary Policy Committee (MPC) raised its interest rates to 30% to help drop its inflation from 43%.
The BoG kept the rates constant for about five months, helping to drive down inflation to about 23.2% in Dec 2023. Yesterday, headline inflation for July eased to about 20.90%, the lowest since March 2022 (19.40%). This reduction was attributed to a decline in the prices of food. July’s deflation result is a continuation of a slowdown in the country’s inflation rate.
While July’s figure is still very far from the BoG target of 8%, analysts at Stears predict that Ghana’s inflation will reach 15% in the coming months.
The current rates might also prompt the MPC—which is keen to keep rates higher for longer to hedge against inflation—to review interest rates in its next meeting. The MPC will meet in September to decide the rates.
Collect payments anytime anywhere with Fincra
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Economy
Inside Nigeria’s cost of living crisis
Nigeria is grappling with a severe cost-of-living crisis that is rapidly eroding the purchasing power of its citizens. In Lagos, the nation’s economic capital, the situation is particularly dire.
Many workers earn less than ₦100,000 ($63.52) monthly, according to a report by PaidHR. That figure is barely sufficient to cover basic needs like food, transportation and housing.
This crisis extends beyond Lagos. A NielsenIQ survey revealed that 81% of Nigerians feel worse off compared to the previous year. According to the report, more and more Nigerians struggle to afford Fast-Moving Consumer Goods (FMCG). The country’s FMCG market had a 17.4% decline in the volume of transactions, painting a picture of how grim the situation is.
Although there has been a reduction in the number of goods bought, customers have had to pay a premium to get them. The NielsenIQ report suggests that the FMCG market value grew by 24.8% as a result of price increments.
While rising prices and falling incomes are creating immense hardship for millions of Nigerians, the government has implemented policies to stem the situation, many of which citizens believe are not enough.
Cybersecurity
TAJBank gets court order for fintechs to reverse $87,817
System glitches have become the proverbial bull in a China shop for banks and fintechs. When they happen, the carnage can be spectacular—and costly. TAJBank, a Nigerian regional bank focused on SME financing, lost more than just money to a system glitch that occurred during an unspecified period this year. The bank has since taken the matter to court, fighting to keep its reputation.
In a motion filed on July 23, 2024, the bank said that six of its customers lost ₦139.63 million ($87,817) due to a system glitch. The glitch allowed unauthorised transactions and withdrawals from these customers’ bank accounts. Desperate to recover the funds, TAJBank traced the money spread across Fairmoney, OPay, and PalmPay accounts.
As a result, the Federal High Court in Abuja has stepped in, issuing an interim freezing order against accounts in these fintech companies. The presiding judge, Justice Peter Lifu granted TAJBank’s request on July 26, 2024, ordering the fintechs to disclose account balances within seven days, adjourning for another hearing on August 12, 2024.
But on Monday’s hearing, FairMoney, OPay, and PalmPay were conspicuously absent. No legal representation, no explanation. The court subsequently adjourned the hearing to September 30, 2024. And in the meantime, the court-mandated a reversal of the money to TAJBank.
TAJBank will count itself lucky to get the ruling in its favour. It’s a reminder that in the fintech world, when you move fast, you break things. OPay, too, faced a similar predicament earlier this year, as it grappled with a ₦714 million ($449,057) glitch that left it scrambling to recover funds from other banks.
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Crypto Tracker
The World Wide Web3
Source:
|
Coin Name |
Current Value |
Day |
Month |
|---|---|---|---|
 Bitcoin |
$58,312 |
– 4.48% |
– 7.02% |
| Ether |
$2,645 |
– 3.42% |
– 20.66% |
 Toncoin |
$6.69 |
+ 0.37% |
– 11.51% |
| Solana |
$144.43 |
– 0.03% |
– 8.76% |
* Data as of 06:20 AM WAT, August 15, 2024.
Opportunities
- The Africa Prize for Engineering Innovation is open to African innovators creating engineering solutions to local challenges. Innovators from sub-Saharan Africa should pitch viable engineering products or services that will have social or environmental benefits to the continent. Apply for the chance to get up to $25,000 in funding.
- The Future of Capitalism Tech Startup Competition is offering $1 million to one lucky tech startup that can transform how businesses today operate. If your tech can save costs, boost efficiency, increase productivity or customer satisfaction, then apply by September 30 for a chance to win.
- Applications are now open for the 5th cohort of Microsoft’s GrowthX Accelerator Programme. AI Startups can apply to join the eight-week incubator that will provide $25,000 worth of azure credits, mentorship from some of the biggest tech corporations and investor readiness lessons. Apply by September 2, 2024.
You should definitely read these 👇🏾
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- Nigeria Freezes Over $37 Million in Cryptocurrency Linked to Protest Organizers
Written by: Emmanuel Nwosu & Faith Omoniyi
Edited by: Muyiwa Olowogboyega & Timi Odueso
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